Compared to the last year’s level, the 2012 ISA allowance has received an upturn due to the current rate of inflation taking a big raise. The 2012 ISA allowance is 11,280£. And the good news is that you can invest up to 11,280£ into your Individual Savings Account or ISA in between 6^th April 2012 and 5^th April 2012.

In general you can invest half of your total ISA allowance into cash ISA which puts forward the fact that the cash ISA allowance 2012 is 5,640£. The total amount which you can invest into shares and stocks ISA is £11,280 sans whatever amount you will invest into cash ISA this year. Suppose you have decided to invest 2,000£ into cash ISA over the year to 5 April 2013, you can invest 9,280£ into shares and stocks ISA that same financial year. Or if you have decided not to invest in cash ISA, you will be able to safeguard bonds and equities from tax by shifting them to an ISA.

The ISA allowance started receiving the upturn since the inflation in the month of March in the year of 2010 when the UK government increased the annual allowance by 3000 to 10,200£ for the tax year of 2010-2011. Alistair Darling, the chancellor of that time declared that the annual ISA allowance would take a raise every year by the RPI inflation rate in the month of September of the former year. The amount was rounded to 120£. 

In times of stringency, no government is likely to give allowance to pay low amount of tax. At present George Osborne, the chancellor is moving up the limit of ISA allowance 2012 in conformity of the CPI inflation rate. Now the CPI inflation rate is relatively lower than the RPI inflation one.